This weekend the Economist had an interesting article about private equity.  I think the article appropriately pointed out how private equity has done a good job of allocating society’s resources.  Specifically, the article discussed how the private equity shops are closely linking management compensation to earnings and leveraging up the balance sheet (to force a lean operation) and ultimately drive greater efficiencies in many businesses. 

But I think the article also pointed out that there seems to be too much money (in private equity or I would add several other asset classes) chasing too few deals.  And I don’t think this problem could have been better raised by (interestingl ...

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